Project cost overruns get scrutiny at Washington County Board

Cost overruns in Washington County public works projects came under scrutiny last week when some elected commissioners said they were having trouble explaining price changes to constituents.

"There have been some projects where, when change orders happened, it wasn't explained very well or communicated very well," said Karla Bigham, the newest commissioner. "It seems like there's recurring things that always have cost overruns. Is there a way to do more due diligence on the front end?"

County Engineer Wayne Sandberg responded that cost overruns — called "change orders" in county language — are common in construction as contractors uncover new challenges and the public wants additional improvements.

"Never is there a situation where we deliver all the unknowns in construction," Sandberg told the county's five commissioners in an informational workshop. "Typically, it's because we want more work or different work than the original scope. That's the most common scenario."

In 36 highway construction projects since 2011, the total cost of original bids was $72.1 million. according to county records. Changes in contracts resulted in a total additional cost of $5.5 million, a bit more than a 7 percent increase.

Thirteen of those 36 projects saved $371,922 less than the original bids.

"I think there's a lot lost in translation as a major project rolls out," said Gary Kriesel, the County Board's longest-serving member. "We have to have a better way of communicating where we're at and why we're there. We've got to have a process in place that takes us from initial concept, that commissioners as well as citizens can look at things, and dots are connected."

She asked for clearer explanations of why project costs increase.

"These are complicated projects and there are a lot of numbers," said Don Theisen, who oversees the county's public works division. "The numbers change, and there's a reason those numbers change, but how do you succinctly tell the story?"

Cost overruns often result from changes that cities want in projects, such as more landscaping and curbs, or from unforeseen discoveries after contractors go to work, Sandberg said.

Sandberg and Theisen said that they can reduce cost changes by doing more soil testing beforehand and restricting public involvement, but that neither approach is practical.

Soil borings, Sandberg said, measure only the area in which they're being done. Public involvement, he said, often adds costs because residents and city officials want changes to make public works projects more useful or visually interesting.

Currently, county policy requires County Board approval for cost overruns that exceed $50,000, but state law says no approval is necessary for changes up to $100,000.

George Kuprian, civil division chief in the county attorney's office, said commissioners should consider changing county policy to the higher figure to reduce the number of change order requests coming before the board.

Kriesel, who chairs the board, said he saw "no smoking guns or hidden agendas" in the concern over cost overruns and said he was impressed with professionalism in the public works department.

"The last thing I want to do is spook you guys," he told Sandberg, Theisen and engineering construction manager Cory Slagle. "We trust your judgment enough that, rather than doing your own thing, you're going to do the right thing."